Business Plan for Beef Cattle Farming
Raising beef cattle for profit requires land, money, and good business management skills. In this section, you will find information and advice on pricing meat cuts, conditioning cattle for market, and understanding beef carcass yields and losses during processing. Tips on applying RFID tags and performing beef quality audits are available as well.
Starting a Small Beef Cattle Farm
To start a beef farm, you will need to select the type of operation and develop a business plan that includes all startup and ongoing expenses. Consider necessary costs such as the purchase of land, animals, feed, and equipment. Other significant expenses include animal care, pasture management, labor, and building handling facilities.
In addition to the cattle farming business plan, you will need a solid management plan. This document should address beef cattle management practices regarding feed, health and nutrition, fencing, housing, and waste.
Note: The costs of beef enterprises are often specific for each operation. In order to better understand the financial aspect of beef production, producers need to consider direct expenses, direct income, and hidden costs.
Learn more about evaluating the potential financial impact of a decision (such as buying new equipment) with Penn State Extension's Partial Budgeting online course.
Raising Beef Cattle for Profit
Beef farms generate income mainly from calf production. It is therefore recommended that cattle farmers select and maintain productive cows who produce a calf every year. The animals should be able to sustain their body condition and raise calves with a weaning weight that meets the end goals.
The retail beef price depends largely on the cost of production and the cost of getting the animal to slaughter weight. The production expenses vary based on the animals' breed and production method (i.e. grain-fed or grass-fed cattle).
The price of beef per pound can further be affected by factors such as fat percentage and type of cut. Obtaining a beef quality grade or an organic beef certification can help increase profits, as well.
Direct Income for Cattle Operations
Apart from the sale of cattle, beef producers can generate direct income from a number of other services. Depending on the enterprise, revenue can be generated from consulting, breeding cattle, hauling, and mowing pastures. Income may also be increased by selling embryos and bull sperm.
Selling hay and feed raised on the farm is another valuable option for cattle farmers. Estimating the expenses of home-raised feed, however, can be challenging.
One way for producers to calculate the actual feed costs is by using Penn State's CropCents app. Once the data for all on-farm grown crops – including operating expenses – is entered, users can see the yield in tons/acre and the cost/ton.
Beef Cattle Market Trends
With a huge market for beef, raising cattle in the US is one of the most common and profitable farming businesses.
The way cows are raised and fed has a big effect on the retail price. Beef is very nutritious, but different feeds deliver different products and tastes. Currently, there is an increased interest in pasture-raised beef, as well as organic and/or locally grown meat products.
Educational Resources for Cattle Farmers
Raising beef cattle for profit is a huge undertaking. Find comprehensive information on beef cattle management with Penn State Extension's articles, webinars, online courses, and workshops.
Articles This article answers many questions for beef cattle producers just getting started in the industry. More
Articles Whether you raise pigs, sheep, goats, or cattle, having an emergency plan for their care is critical for animal welfare and business continuity. More
Videos Small-scale livestock producers who direct market their animals or their products have more control over variable market prices and can increase their profit potential. More
Articles Knowing the income and costs of an operation are critical to the financial success of that operation. Use this article as a guide to help determine the financial success of your beef production enterprise. More
Articles The PA Beef Producers Working Group (PABPWG) commissioned this survey with two purposes: create baseline data to help the working group characterize the beef industry in Pennsylvania, and identify specific challenges and opportunities for producers. More
Videos Grass-fed beef production in the United States is on the rise. However, there are important management and forage quality factors that must be considered. More
Articles This report summarizes the calf-fed holstein demonstration comparing growth performance and economic data of implanted and non-implanted cattle by the PA Beef producers working group in 2017. More
Articles This report summarizes the calf-fed hosltein feeding demonstration complete with growth performance and economic data by the PA Beef Producers Working Group in 2016. More
Articles Production of high-quality dairy-beef is relatively new to the beef industry and depends almost entirely on Holstein bull calves. More
Source: https://extension.psu.edu/animals-and-livestock/beef-cattle/business-management/shopby/tara-l-felix
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